Your funder is asking about AI. Here is what to tell them.

Funders and trustees have started asking charities a question most are not ready for: what is your AI policy? Here is why they are asking, and what a good answer looks like.

Why they are asking now

Funders are not trying to catch you out. They are managing their own risk. If your staff are putting beneficiary data into public AI tools and it goes wrong, it becomes their problem too. The question is really: have you thought about this, and can you show me?

What they actually want to hear

Not that you have banned AI. Not that you are "exploring AI opportunities". They want evidence that you have drawn a line, written it down, and told your staff where it is.

The four things your answer needs

• Which AI tools your staff are permitted to use, named specifically.
• What data must never be entered into them, with examples your team recognises.
• Who is accountable for oversight, by name or role.
• When the policy gets reviewed, because the tools change every few months.

What if you do not have one?

Say so honestly, and say what you are doing about it. "We do not have one yet, and we are putting one in place this month" is a far better answer than a vague reassurance that falls apart under one follow-up question. Funders forgive gaps. They do not forgive not knowing.

How to get an AI policy quickly

An AI Governance Pack from SAO Consultancy costs £750 and is delivered in under a week: a tailored policy, a risk register with likelihood and impact scoring, and staff guidance in plain English, ready for trustee and funder review.